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Msg  69227 of 69453  at  3/3/2021 7:28:05 PM  by


Gold Summary - 3rd

Gold Summary for March 3, 2021

2021-03-03 18:39 ET - Market Summary

by Stockwatch Business Reporter

New York spot gold resumed its slide Wednesday, falling $23.20 to $1,715.10. The TSX Venture Exchange tagged along, losing 35.77 points to 991.98 today while the TSX gold index slid 5.75 points to 273.63. Most Canadian gold miners took it on the chin today. Kirkland Lake Gold Ltd. (KL) slid $1.08 to $41.78 on 1.85 million shares while Barrick Gold Corp. (ABX) dropped 40 cents to $24.68 on 9.31 million shares.

Rising gold stocks were as rare as bullion itself today, although shares of China Gold International Resources Corp. (CGG) -- which often have a mind of their own -- added 47 cents to $3.61 on 566,000 shares. The company has been silent since late January when it reported 2020 production at 234,700 ounces, handily beating its prediction of 212,000 ounces. (The company's gold comes from CSH, in China's Inner Mongolia region, and from the Jiama copper and gold mine in Tibet.) China Gold, trading near $2 at the time of its news, got as high as $4 in late February. After a brief dip below $3 to start March, it is again on the rise.

Kevin Bullock's Anaconda Mining Inc. (ANX) lost three cents to 79 cents on 596,000 shares on word that it has begun a 3,500-metre drill program at its Goldboro project in Nova Scotia. Mr. Bullock, president and chief executive officer, wants to upgrade the recently revised resource for the project. He says that the pit-constrained resource estimate had been designed based on measured and indicated rock, but it also captured inferred material, and it is that rock that Anaconda is looking to upgrade.

The company's most recent resource estimate is just days old. Late last month, Anaconda said that Goldboro held 16 million tonnes measured and indicated at 3.78 grams of gold per tonne and 5.3 million tonnes inferred at 4.68 grams per tonne, a total of 2.74 million ounces. Of that tally, nearly 1.18 million ounces are in the open-pit shells and of those, just 89,000 ounces remain inferred.

Upgrading a modest inferred resource might seem an unnecessary diversion, but Anaconda intends to roll out a feasibility study this fall, and that study cannot include inferred resources. Some additional ounces may also be included, as the drilling will also target inferred gold near the currently defined pit shells. Anaconda is also beavering away on a preliminary economic assessment of Goldboro. That dream sheet could be available later this spring, and it presumably will include the underground rock as well as the inferred material.

Anaconda, then run by Dustin Angelo, acquired Goldboro through its acquisition of Orex Exploration Inc. in 2017. Orex, at the time languishing at or below five cents, had put itself on the block, citing the value of Goldboro as "not adequately reflected in the company's stock price." At the time, the deposit held barely 800,000 ounces, none of which were identified as an open-pittable resource. Since swallowing Orex, Anaconda has had better success building ounces -- and value -- than did its previous owners.

Today was not the best of days to reveal new assays, as John Burzynski's Osisko Mining Inc. (OSK) discovered. Osisko, down three cents to $2.84 on 1.91 million shares today, has drilled a 9.8-metre interval averaging 35.7 grams of gold per tonne in the Underdog corridor at its Windfall Lake project in northwestern Quebec. Mr. Burzynski, a man of few words today, said only that the "infill drilling continues to deliver impressive grade and width results from the Windfall deposit."

The latest assays may come as no great surprise -- they are from infill holes after all -- but they are also from areas beyond Lynx. (Lynx has produced most of the assay encouragement over the past year or two.) The latest results showed a 4.2-metre zone that produced 65.6 grams of gold per tonne from the Caribou zone, a two-metre hit averaging 70.7 grams per tonne at Underdog, a two-metre interval averaging 9.08 grams per tonne at Zone 27 and a 2.1-metre zone that ran 18.9 grams per tone in the Mallard zone.

Windfall's resource estimate is also just days old. Osisko calculated six million tonnes measured and indicated at 9.6 grams of gold and 5.9 grams of silver per tonne, plus 16.4 million tonnes inferred at eight grams of gold and 2.7 grams of silver per tonne -- a total of 6.1 million ounces of gold and 2.6 million ounces of silver.

The at one time appropriately named Main zone hosts just over 1.1 million of those 6.1 million gold ounces, while Underdog hosts just over 1.2 million ounces. The Triple 8 zone, an area not tested in the latest holes, hosts about 150,000 ounces, but the bulk of the gold now resides within Lynx. At last report, it held 3.6 million ounces, and its rock had the best grades. Perhaps the latest hit at Underdog will help it close the gap on both counts.

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